Austin Texas Real Estate Blog

Developer Magazine has announced its 2009 Sustainable Community of the Year. Mueller is located in the vibrant city center of Austin, Texas, and reflects Austin’s commitment to green technology and environmental responsibility. The development makes use of the land formerly devoted to the Robert Mueller Municipal Airport, reimagining it as a mixed-use urban environment incorporating commercial and residential elements in one unique package. Built by Catellus Development Corporation and designed by ROMA Design Group, the project is expected to provide approximately 10,000 construction jobs to Austin residents.

As a participant in the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) for Neighborhood Development program, the development requires that all residential construction in Mueller qualify for Austin Energy’s three-star energy-efficiency rating. In addition, commercial buildings within the development must meet LEED certification standards; this ensures that they will provide healthy and energy-efficient environments. The Dell Children’s Medical Center of Central Texas is the first hospital ever to achieve LEED platinum certification and set the standard for new construction in Mueller. It is joined by the platinum-certified Ronald McDonald House and the silver-rated Dell Pediatric Research Institute; Mueller’s strict environmental standards ensure the highest level of green-friendly building possible.

Mueller already boasts over 200 three-star rated homes; the community is eventually slated to provide 4,600 residential units, of which one-fourth will be devoted to low and middle-income housing. Entry-level homes are designed to provide a point of access to the housing market for younger buyers, while a senior living community is expected to provide affordable housing for older residents. Ultimately it is planned that 10,000 residents will be served by the Mueller development. Green space and parks comprise twenty percent of the development and occupy 140 acres, providing families with safe places to relax and play together.

Mueller is the result of a partnership between Austin and Catellus Development and is centrally located to allow easy access to major employers within the metropolitan area. Situated just two miles from the University of Texas campus and three miles from downtown businesses, Mueller earns high marks for its pedestrian-friendly design and well-planned transportation routes. The development will eventually include over four million square feet of retail and employment opportunities, allowing many residents to live and work in the same area and eliminating lengthy commutes. Austin Energy’s on-site power plant is environmentally advanced and provides green energy for the development.

Mueller offers unique advantages to residents and businesses; as a result, it has gained local support and is considered one of the most innovative and green-friendly projects of its kind anywhere in the United States. Recreational, retail, employment, and residential areas coexist harmoniously and provide a cohesive and sustainable community in the heart of Austin.

The home building industry has been presented with a new challenge. The U.S. Department of Energy (DOE) has launched a voluntary program that challenges these builders to construct homes that are more energy efficient. The challenge proposes that newly constructed homes will run with at least 30% more efficiency than homes constructed with the criteria set forth in the 2006 International Energy Conservation Code. This program is known as the “Builders Challenge.” It comes with a proposition that envisions the accomplishing a 220,000 new energy efficient homes built by 2012.

The Energy Smart Home Scale (E-Scale) provides home buyers with the crucial information regarding home energy efficiency through comparison against previously built homes. The DOE will be using this and the Home Energy Rating System (HERS) to evaluate the energy qualifications for the challenge. The HERS System was devised by the Residential Energy Services Network (RESNET) who govern, inform and certify the builders regarding energy efficiency. RESNET is recognized as the industry standard by the US Mortgage Industry and the Federal Government.

Equally up to the challenge of saving our planet from suffering the effects of global warming is the National Association of Home Builders (NAHB). The launched a program to bolster energy efficiency last February. This program is known as the “National Green Building Program”. It provides an opportunity for green builders to earn their certification by accumulate points in seven different categories for efficiency, and three levels of certification based upon points acquired by inspections verified by green experts.

The seven categories of expertise require to evaluate a builders certification levels of either bronze, silver or gold are; water, energy, global impact, resource efficiency, lot and site development, indoor environmental quality and homeowner education. For more information on this program visit
NAHB press release and the NAHB National Green Building Program Web site.

Over the last twenty years or so, the indoor mall seems to have lost favor. The number of new malls has decreased significantly, and there is only one set for construction in 2009. Until recently, malls have been placed away from residential areas only. For all the convenience they may offer, one would have to travel some distance to get there. With the environment clearly on everyone’s mind, malls are being scrutinized for excessive parking lots and unused space. Developers are starting to see new potential here: make it more like home.

In the last several years, any malls that have been built are leaning more toward open air models of old time downtown cities. These have been built closer to residential living areas and are called “lifestyle centers,” as they are designed with a more welcoming style. Many boast restaurants, movie theaters, etc. in an attempt to bring more people there for a lazy Saturday. More recently, as many investors are realizing how much space can be utilized, developers are looking for ways to bring housing right into the mall. In Colorado, this has already been successfully achieved. In 2003, a mall was created with 1300 apartments, 200 condos, and single family housing attached to a 106 acre lifestyle center. This is similar to the mixed use properties currently being built in Austin and has had great occupancy rates.

Many developers are seeing now that the potential for housing is a tremendous gain. Building vertically to accommodate living or office space helps the environment as well. It seems when the mall was first created in the mind of Victor Gruen, he envisioned such a place. He saw a small town that was free from cars, but offered a small town feel with day cares, shopping, and eating all right there. Who wouldn’t want to live there?

During these hard economic times, many new retail construction projects have been delayed or cancelled in Austin. Though the city remains one of the best new development spots for retailers, these are hard times to expect great return on investments. Northcross Mall, however, has seen the beginnings of a new addition in the form of a 99,000 square foot Wal-Mart expected to begin building in the spring.

The weakening economy has caused many local investors to place retail opening on hold for now. Endeavor Real Estate in Austin has pushed back plans for its retail development called the Domain by a year. Retailers nationwide are doing the same. Many have already had to close down stores locally. Wal-Mart has done well during this crisis, reporting an increase of 3.4% in stores that have been open for at least a year. Due to this, many are happy to invite the store to the area. Sales tax revenue showed a decline in the last few months and is expected to continue to decline through 2009 in Austin. This new Wal-Mart will not only employ 250 to 350 people, it will also serve to create more revenue for the city to use in its budgeting.

Austin is not expected to be as affected by the economic downturn as severely as other cities. Despite many retailers holding off on new projects, there are still several who are forging ahead. Other local businesses are expanding as new mixed use developments are created downtown. Though tax revenue projections are not yet complete, Austin is hopeful the new Wal-Mart will further strengthen the local economy.

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Mixed used sites in Austin are on the rise. Many new developments in the area are including both residential and commercial uses in their blueprints. These new construction projects are beneficial to Austin for their increase in revenue from both aspects. To keep up with what could become a very busy part of the city; Austin is now considering a new commuter rail system between the old Mueller airport and the Austin-Bergstrom International Airport. This 15 mile addition would run through the University of Texas campus and downtown Austin.

Due to the possibility of this addition, developer Grayco Partners has removed ten acres from its current project between Riverside and Lakeshore Boulevard. The original plan included thirty acres of dense townhomes, condominiums, and higher end retail stores. This construction project would be the largest redevelopment seen in the area, replacing run down strip malls and old apartment buildings. It may be years before Austin approves the rail option, but Grayco has decided it is best to wait, feeling the possibility of the additional transit may affect the type of retail or restaurants in the proposed area along Riverside. The company has also postponed the purchase of an additional twenty acres just east of the current property indefinitely while waiting for the city’s decision. The current proposal for the new rail line is projected to cost between $550 million and $614 million to build, and $21 million to $23 million yearly to maintain. In the meantime, Grayco will make necessary adjustments to its new rezoning proposal and brainstorm ideas for the final construction.

For more than a year West 17^th Street at Lavaca Street has been closed. There’s been construction, which residents have accepted and adapted to. After all, there is nearly always construction in some part of Austin. You can’t avoid it; you can only accept it, even when it does inconvenience several thousand state employees.

Besides, this construction, when it started, was expected to lead to luxury condos and an office building, to be called La Vista on Lavaca. The permit was taken out for it in April 2007. At that time, Jason Redfern, manager of the Right of Way Management Division in Austin’s Watershed Protection and Development Review Department, said, the developers planned to keep the street closed for six months. When six months came and went, they renewed the permit for another six.

April 2008 should have seen another renewal or the completion of the project. It saw neither, and in fact, didn’t even see construction. No one has been there for months and the permits are expired. The city is now probing into the whys and whats of the situation, hoping for a clear answer in this mysterious halt.

The developers claim that their permits are up to date, and that the city is mistaken. But their claims do nothing for the fact that the street is still closed for no apparent reason.

If nothing is going to be done, citizens want it open; so does the city. There should not be, they say, inconvenience for no reason. There should only be inconvenience with the promise of future convenience. And that has disappeared from West 17^th and Lavaca.

A unique planned community in Port O’Connor, Texas, offers not just a site for your home but one for your boat as well, with lots starting in the $100,000 range, and ready access to prime fishing waters. The Caracol coastal master-planned community is located along the Intra-coastal Waterway near Port O’Connor on the Gulf of Mexico. It’s convenient to Houston, Austin, and San Antonio, and yet far enough away to be a relaxing vacation destination. With the Gulf in the backyard, a homeowner in this gated community can park the car in the driveway and the fishing boat at the slip.

Port O’Connor is known world wide as a prime close- and deep-sea fishing location. Just off shore, the waters teem with red snapper, king fish, tarpon and jack fish. Farther out, tuna, dolphin, and blue martin are abundant. Port O’Connor hosts the annual Poco Bueno fishing tournament that attracts sport fishermen from all over the globe.

The planners building Caracol aim to provide a second home for serious fishermen in an upscale gated community. Construction has begun and, when completed, the development will boast 74 home sites in various sizes, ranging from 40 to more than 100 feet of waterfront. Future development plans include a mid-rise condominium with a marina attached. There will also be a community pool and pavilion, which is currently in progress.

Caracol is a joint venture of Trend Development, Inc., and Forestar Real Estate Group. Trend Development is a privately held real estate development company with several large-scale projects in progress throughout Texas. Forestar Real Estate Group operates in two areas: real estate and natural resources. The real estate segment holds interests in ten states. The natural resources part manages oil and gas resources and wood fiber sales from land located in Georgia.

As the cost of oil rises into the record books, businesses, regardless of size, are looking for ways to reduce consumption, and thereby improve the bottom line. Managing energy costs has become a new industry as companies such as LPB Energy Management in Abilene, Texas, come into being and carve out a niche for themselves, advising businesses on lowering energy consumption.

Construction comes into play first and foremost, with details such as which way the building faces, how air and sunlight moves throughout the day, and how best to take advantage of existing topography. In Abilene, costly alternative energy sources are not as in demand as the consumer doesn’t have the benefit of selling extra power back to the utility grid. So, innovations in design and construction are needed to meet the desire for greener, more environmentally friendly buildings.

LPB has provided advice in energy management to the Abilene Independent School District. As a result, more efficient lighting systems – those that incorporate motion detectors – were installed in AISD’s newest building, Craig Middle School. Motion detectors are an easy, low cost way to realize an immediate savings in energy costs. The motion detectors have an added bonus of being a security feature.

The heating and cooling system at Craig is monitored and controlled at the central maintenance office, meaning the system can be powered down at a specified time to save on energy when no-one is occupying or using the building. Eventually, all systems within the AISD buildings will be monitored and controlled in this way.

LPB monitors electricity, water, and natural gas usage for its clients and plays a large part in negotiating the best rates possible from regional providers, and saves its customers the headache of wading through contracts and rate negotiation.